Donchian Channels (DC)
Donchian channels: the highest high and lowest low of the last bars and their middle, a classic breakout channel.
How to read it
- A close above the upper band is a new N-bar high, a breakout signal.
- A close below the lower band is a new N-bar low.
- The middle line can serve as a trend filter or trailing exit.
Key settings
- Period 20, offset 0.
- Line width and background opacity.
Good to know
- Drawn on the price pane, over the candles.